Undertake International Service Outsourcing In China Swot Analysis And Countermeasures

With the globalization of economy develops and Specialized division of labor, the international service outsourcing has appeared in the field of service trade. In order to improve the core competition, the corporation transfers some non-core economy activities to the other corporation. The international service outsourcing becomes the important strategic choice. The new adjustment of world industrial structure is ongoing.This paper introduces the definition and the types of service outsourcing, and then analysizes the reason of service outsourcing from different aspects by using the Division of Labor Theory, Transaction Cost Theory, Value Chain Theory, Core Competitiveness Theory, Society Exchange Theory and Authority and Political Theory. The Division of Labor Theory thought that the division of labor may cause the enterprise to concentrate the core business development, and form the economies of scale. The Transaction Cost Theory thoughts that the low transaction cost is the reason that the enterprises choose the outsourcing. When the middle organization gains the resources at the lowest cost, the enterprises should choose outsourcing. The Value Chain Theory thinks that enterprises should concentrate their efforts on cultivating and developing these comparison superiority link, and shift non-core link which has no comparison superiority to other specialized companies. The Core Competitiveness Theory thoughts that the enterprises should transfer the non-core the other companies and concentrate the main energy on the core business so that they can maintain enterprises' sustainable competitive advantage by using the exterior resources.Global service outsourcing has vital influence on both mother countries and host countries. It not only decreases the cost, creates more employment opportunities, spreads the risks and improves the corporation's competition in the mother countries, but also upgrades the industrial structure, eases the employment pressure, learns advanced technology and scientific management methods in host countries. Outsourcing of service provides a rare opportunity for economic development of developing countries. However, it may also have some negative impact on the country's economy. Therefore, study of international service outsourcing has a profound practical significance. We must seriously guide and manage the service outsourcing industry and the promote it to grow towards the right direction.Based on the real environment of Shenzhen services outsourcing industry, this paper analysizes the strengths, weaknesses, opportunities and challenges faced by Shenzhen international service outsourcing in SWOT. Finally, this paper proposes some suggestion on how to develop Shenzhen's international services outsourcing industry. ShenZhen should attach great importance to the role of outsourcing services.